Solavei wins continued access to cash collateral to fund operations

By Kali Hays

New York, Dec. 31 – Solavei, LLC received continued access to the cash collateral of its pre-bankruptcy lender Opus Bank through Feb. 28, according to a Dec. 31 order from the U.S. Bankruptcy Court for the Western District of Washington.

As previously reported, Solavei said that continued use of the cash collateral to is needed “minimize disruption and to avoid termination of its operations pending consummation of a transaction” as it is unable to meet working capital needs.

The company is “in the process of negotiating a transaction with a third-party that will, if confirmed as a part of a plan of reorganization, result in value to creditors,” according to the motion.

As with prior cash collateral budgets, the company will continue with a fund that was implemented to secure the payment of professionals employed by Solavei and its unsecured creditors committee.

The fund will continue to be maintained by bankruptcy counsel Bush Strout & Kornfeld LLP.

Opus Bank agreed to continue monthly payments to the professional fund up to $50,000 and Solavei agreed to adhere to a weekly budget with fixed amounts of payable expenses that are not to exceed 5% of the fixed amount per week.

Solavei will also provide the court, Opus Bank and T-Mobile USA, Inc., which provides it mobile service on a wholesale basis, a weekly report of its business operations as part of the cash collateral agreement.

Solavei, a social commerce telecommunications company with headquarters in Bellevue, Wash., filed for bankruptcy on June 11, 2014. The Chapter 11 case number is 14-14505.

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